In the United States, it is estimated that nearly seventy percent of all workers want to retire by the time they reach the age of sixty-five. This number is significantly from previous years, as people are living longer and looking to enjoy their golden years.
For many people, retirement is the time of their lives when they finally have the chance to do what they want without worrying about work. They can travel, spend time with family and friends, or pursue new hobbies. In other words, retirement allows people to enjoy themselves after years of hard work. Additionally, retirees often bring a great deal of experience and knowledge to their communities, another benefit to society.
However, many people cannot retire due to a lack of savings when they reach this age. Statistics have shown that most Americans don’t have enough savings to retire comfortably. Thankfully, there are several ways that the U.S. government can help people quit, including:
Helping Small Businesses
Small businesses are responsible for hiring 70% of the American workforce. This means they are responsible for giving them enough money to retire. However, most of these businesses tend to fail. And even more, they don’t have the necessary resources to help their senior employees to retire. The U.S. government can help small businesses in various ways.
First, the U.S. government can delegate professionals to small businesses to help create a robust retirement plan for their employees. Small business retirement planning services can help by providing the necessary resources and information needed to ensure employees save enough money. Furthermore, they can plan out specific programs to help improve these employees’ overall lives when they retire. Many small businesses will undoubtedly be happy now that they have access to a robust planning service for their aging employees.
Second, the Small Business Administration (SBA) can create retirement-specific programs and services. It would be geared towards ensuring that small businesses are correctly preparing their employees for retirement. It should include counseling, workshops, and other events allowing business owners to learn more about the subject. The SBA can also provide resources and advice on what type of retirement plan would be best for small businesses and their employees.
Lastly, the U.S. government can offer tax incentives for small businesses that help their employees retire. It would include a deduction on the employer’s taxes for any contributions to the employee’s retirement savings. This would ultimately encourage more businesses to provide their employees with the resources needed to retire comfortably.
Improving Social Security
Social Security is a government-sponsored retirement program that has been around since 1935. The government created the program during the Great Depression to help seniors who didn’t have enough money to retire. The program works by taking a percentage of an employee’s paycheck and putting it into a Social Security trust fund. Employees then receive monthly payments from this fund once they reach retirement age.
The problem with Social Security is that it doesn’t provide enough money for people to retire comfortably. The average Social Security benefit is only $1,360 per month. This amount is barely enough to cover basic living expenses, let alone enjoy retirement. However, the U.S. government can help improve Social Security in several ways.
First, the government can increase the Social Security tax rate. This would mean that more money would go into the trust fund, allowing for more extensive benefits when people retire. After that, the government can increase the amount of money paid into the trust fund each year. This would provide a larger retirement fund for future generations. Lastly, the government can raise the retirement age. This would mean that people would have to wait longer to receive their benefits, but it would also mean that they would receive more extensive checks.
Making it Easier for People to Save Money
The U.S. government can also make it easier for individuals to save money for retirement. One way to do this is by creating tax incentives. For example, the government could offer a tax credit for people who contribute to their 401(k) or IRA accounts. As a result, it would encourage more people to save money and help them reach retirement goals.
Another way the government could help is by providing matching funds for retirement savings accounts. For example, the government could match every dollar an employee contributes to their 401(k) up to a certain amount. This would help people save money and reach their retirement goals more quickly.
Retiring shouldn’t be stressful for aging employees. Changing how the government helps people save for retirement can ensure everyone has the resources they need to retire comfortably.